Business: Economic Growth
1. There are many factors that influence economic growth, of which government type is only one. More economically important even than whether a country is governed by democracy or a dictatorship, is the fact of its economic stability. The United States has thrived under its democracy, mainly because it is a stable type of democracy. In countries where this system of government has recently been introduced, stability is more unlikely than not, often affecting economic growth aversely.
A longstanding dictatorship on the other hand might be more stable and result in economic growth by means of sound financial decisions made by such a government. Very often, government intervention favors large industries and the overall effect on the economy, but not the individual consumer. For optimal and long-term economic growth, a democratic system of government therefore appears to be the best system. While initial economic growth is therefore possible under a dictatorship, it is unlikely that this will be a long-term situation. Furthermore, consumers are restricted in terms of choice when government attempts to protect them from products regarded as "dangerous". However, I do not believe that the effect on the general public is always beneficial. Such instability might be the result of social unrest or corruption among politicians working for their own gains rather than that of the country. Government intervention in terms of product restrictions for example can lead to a lack of national competition, and drive product prices upwards. On the other hand, a dictatorship tends to be restrictive in terms of opportunity, innovation and sustainable growth. Whether government intervention in trade is best for the nation as a whole depends upon the extent and nature of such intervention. Any potential dangers of a product should appear on its label, with the power of choice resting with the consumer instead of with government. It is true that such intervention serves a protective function for industries and producers in the name of fair competition.
Common topics in this essay:
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economic growth,
government intervention,
system government,
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